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tv   Asia Business Report  BBC News  August 31, 2017 1:30am-1:45am BST

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after north korea's latest missile test, president trump has warned that the time for talking is over. president trump appears to have dismissed the prospect of a diplomatic solution to the current missile crisis. although his defence secretary, james mattis, later said diplomacy was still possible. the governor of texas says the us state has not yet seen the worst of the flooding triggered by tropical storm harvey. greg abbott says 1a more counties has been included in the disaster zone. tributes are being paid to sir david tang. the hong kong born businessman sir david tang who has died at the age of 63. he rose to prominence through his shanghai tang fashion chain, and was well—known as a charity fundraiser and friend of celebrities. that's all from me for now. stay with bbc news. and the top story here in the uk: the prime minister insists she intends to fight the next general election in 2022. speaking on a visit to japan, theresa may said there was no truth whatsoever to reports
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she would stand down in two years‘ time. now on bbc news, all the latest business news live from singapore. the indian economy is growing, but by how much? recent changes, like a new goods and services tax, have kept people guessing. and donald trump snakes a pitch to clean up the tax code in america. —— makes a. trump snakes a pitch to clean up the tax code in america. —— makes am costs americans millions and millions and millions ofjobs and is self—destructive, trillions of dollars. good morning, asia. hello, world. welcome to another edition of asia business report. i am sharanjit leyl asia business report. i am sharanjit leyl. thank you forjoining us. today, india releases growth figures for the three months untiljune.
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they they implemented a new goods and services tax which promises to boost production, but has trouble getting off the ground to be that is after the controversial move last year to remove high—value banknotes from circulation. how was that affecting growth in india? we have this report. after months of almost no work, things are starting to get a little bit busier. this factory makes machines for various industries ranging from hospitals to firms. but the company has been struggling to make profits for the last three years. it became worse when the government banned nearly 90% of the cash in circulation last november in an effort to crack down on corruption. translation: after the cash ban, most industries cut down production. they were all very worried. we were hardly getting any
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orders. sales, which were already low, went down further by 50%.m had a huge impact on india's economy, especially the small to medium—sized businesses like this one. just when factories started to recover, another setback. injuly, a goods and services tax was introduced by the government are com pletely introduced by the government are completely reformed the way businesses paid tax. the government says the tax overhaul will increase growth. but initial teething problems and the cash ban have stopped consumer demand. in june, production fell to levels not seen in nine years. the world bank says india's economy will recover and grow by more than 7% in this financial year. but economists say more needs to be done for that to happen. it has the potential to grow at 7.5 - 8%. that that happen. it has the potential to grow at 7.5 — 8%. that that has the
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potential. however, the real growth engine has to come from private investment, consumption, and exports. we cannot depend on government funded infrastructure to actually be the stimulus for over. the revival of the sector will be important to that engine. it has a big role to play in the third largest economy to fully realise economic potential. bbc news. it is burning season for corporate china and the bank of china is reporting and the bank of china is reporting anii.5%jump to more and the bank of china is reporting an ii.5%jump to more than $50 billion. —— earning. the fourth biggest lender reported a decline. overall, the financial sector on the mainland appears to be healthy with lower bad loans. regulators have been raising efforts to stop the shadow banking system which has over populated nontraditional bank
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lenders. i spoke to someone to ask if the crackdown is having an impact. overall profitability for chinese banks is actually quite healthy. what remains a concern is the net interest income has been deteriorating over the past two yea rs. deteriorating over the past two years. this is no fault of their own. what is happening is these are macro factors. the property market has been coming off and china is slowing down the pit is not all doom and gloom. the chinese banks have been wise and are moving away from interest income —based to a fee—based approach. we can see they are currently investing in many new business opportunities like dobbing investment banking, syndicated loan desks, and trading. —— propping up. we have seen them invest in other parts of the region besides their own, which is southeast asia. i would say in the long—run, chinese
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banks are ok. for many years we have reported on shadow banking. that is a real concern. that is right. the origins of shadow banking go back to the chinese banks themselves. they have traditionally been very conservative with credit policy. they have really conservative with credit policy. thegifiiavereally— "f" "w conservative with credit policy. theléif‘iatheall-y; 77—77 w, interesting is recent innovations have brought p2p and on line lending companies to these. there have been many innovative solutions up illias fifa be subsidies of alibaba for
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example. —— solutions. there are new ways to do this. even if banks don't wa nt to ways to do this. even if banks don't want to touch someone without credit history, these p2p lenders have their own models, with social media and data and on line platforms. uber‘s new ceo says he wants to take the company public as soon as 2019. the former head of expedia met his employees for the first time on thursday. he said an initial ipo would take place in 36 months. he also said he would stem the financial losses of $3 billion. we
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will speak to a reporter now. is that likely? this is still a tentative timeframe. investors are excited for when it happens. uber is the world's most valuable technology company, worth $70 billion. it is also the biggest loss making private company currently. it is expanding so company currently. it is expanding so rapidlyand is ~ 7 77” exand it to ,{;f;filff iii” ex-and it to 6025515? 757577 and managed to expand it to 60 countries and made it highly profitable as well applied aside from the financial problems of uber,
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it also has a toxic work environment. exactly. that is why there is a large timeframe to be 18— 36 months. it gives him leeway to fix these problems. finances, you mentioned the toxic workplace. it is a cultural problem he said he would fix. discrimination, racism, sexual harassment. uber is also involved in legal issues with google and self—driving cars. they are also being investigated by us authorities regarding foreign bribery. there is a lot to sort out. it is his first week. he has a lot to do. a tough week. he has a lot to do. a tough week ahead. 30 years since the world's biggest economy reformed its tax code. overnight, donald trump launched his push for tax reform during a speech in the us state of missouri. he said he wanted to create jobs with higher wages for americans, but he lacks details.
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congress had to do much of the heavylifting. we have this report. the stock market is up. the unemployment rate is at an all—time low. if you listen to donald trump, he says the system is rigged. in a speech to introduce tax reform, the us president told the crowd that code costs iili’giiiihéilgi 1}; £22532 £22315 — ——r . . . "7 77, . millions and millions of american millions and millions of jobs, trillions of dollars, and billions of hours spent on compliance and paperwork. one proposal he has been pushing is cutting the nation's 35% corporate tax rate to 15%. those in favour say it would encourage countries to stay in the us and create jobs. it would encourage countries to stay in the us and createjobs. but not so in the us and createjobs. but not so fast. budget experts say it could cost the government $2 trillion.
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critics say there is no new evidence companies saving more on tax will expand their workforce. plus, companies saving more on tax will expand theirworkforce. plus, it companies saving more on tax will expand their workforce. plus, it is so expand their workforce. plus, it is so full of loopholes most firms already pay less. there is bipartisan support to simplify the tax code of america. but given the potential impact on workers and businesses in the deficit of the country, modernising the rules will bea country, modernising the rules will be a tall order to be michelle fleu ry be a tall order to be michelle fleury with that report. the markets that just opened in fleury with that report. the markets thatjust opened in asia. gains for the nikkei. the all ordinaries in australia as well. they are taking cu es australia as well. they are taking cues from wall street. rosy numbers in the us. they have been advised up to 3% annual growth in the second quarter. and that is it for this edition of asia business report. thank you for watching. you are watching bbc news. the headlines. as north korea outrages the world by launching a missile overjapan,
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donald trump warns the time for talking is over. the governor of texas says the us state has not yet seen the worst of the flooding triggered by tropical storm harvey. the boss of the oil giant, shell, the biggest company in britain, has questioned whether the government's plan for greater transparency in executive pay will work. ministers want companies to force the uk biggest firms to reveal how much more their chief executives are paid compared to the average worker. but shell's ben van beurden, who earned 7.5 million last year, argues that the government's proposal is flawed. our business editor, simonjack, reports from rotterdam. big business, how do you stop too much money flowing to the top? the government has a plan, but does it make sense? this is shell's rotterdam refinery, it has customers and employees all over the world. it's the most valuable company
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on the london stock exchange and pays more dividends to uk pension funds than any other company. how do you get a grip on a company like that? that's the old refinery, but also a lot of the new stuff... ben van beurden is shell's chief executive. the uk government's flagship proposal to curb pay is to force companies to publish how many times more the boss gets paid than the average worker. simple. it's a matter of public record, you got paid £7.5 million last year, that was a 60% increase from the previous year, and could you tell me what the multiple is of your pay versus the average shell employee? do you know that number? well, no, i don't have that number to hand, not because, you know, i wouldn't care about it or i would forget about it or whatever, it's who is the average shell worker? the average one in the uk? the average one in the united states, or globally, or do we include the people who work on our forecourts or not, etc?
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so this is going to be a very complicated definition piece. the government's clear, it should be average uk pay, an incentive to push up pay here, but does it make sense for a company that operates in over 70 countries? it sounds to me that the natural conclusion from what you've said, is that your position with government saying — look, measures like this don't work for companies like ours? sometimes it comes down to that. sometimes we say, well, why don't you do this or why don't you look at this particular way of strengthening etc? so conversation doesn't mean push back, push back, push back, it means finding constructive ways forward. shell's not alone, of course, the premier league of uk business is stuffed full of multinationals, who will also feel this government attempt to put a lid on payjust doesn't fit. simon jack, bbc news. time now for all the sports news in sport today. mike embley is here in around half an hour with more on the international crisis with north
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korea. hello, i am tulsen tollett, this is sport today, live from the bbc sport centre. coming up on this programme: maria sharapova is through to the third round of the us open after a three set victory over timea babos. bangladesh secure a first ever test match win over australia, beating them by 20 runs in dhaka. and liverpool agree a deal with arsenal to sign england midfielder alex oxlade—chamberlain. hello and welcome to the programme, where we start with a busy day three programme at the us open in new york. 87 matches are due to be played or completed on wednesday due to rain the day before. maria sharapova has successfully won her second round match against hungary's timea babos. after beating second seed simona halep on the opening day, the 30—year—old was a three set winner, having lost the opening set before responding. the russian is playing in herfirst appearance at a grand slam
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since she returned from a 15—month doping ban in april having been
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